Australian weekly consumer sentiment rises slightly

The Australian weekly consumer sentiment rose slightly last week. The ANZ-Roy Morgan Australian consumer confidence rose 0.7 percent and partly reversing last week’s drop. Financial conditions subindices were negative, with current financial conditions and future financial conditions falling 0.5 percent and 3 percent, respectively. The indices dropped in the previous reading too.

Economic conditions readings came in mixed, with current economic conditions recording a solid rise of 5 percent, while future economic conditions fell slightly by 0.8 percent. The ‘time to buy a household item’ sub-index rose 2.6 percent, its second straight gain. Four-week moving average inflation expectations dropped by 0.1 percentage point to 4.2 percent; this was the third straight decline.

Lower petrol prices might have played a role in underpinning sentiment, with the four week moving average for inflation expectations falling to its lowest level since the end of July.

“Consumer confidence is well above its long-run average, a strong show of resilience in the face of the recent equity volatility and the spate of negative news surrounding house prices”, said ANZ Head of Australian Economics, David Plank.

At 14:00 GMT the FxWirePro's Hourly Strength Index of Australian Dollar was slightly bullish at 68.1074, while the FxWirePro's Hourly Strength Index of US Dollar was bullish at 93.7823. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex